Holidays cancelled as tour firm goes into administration

The company – which also traded as Aegean Flights – sold packages and flights to Turkey.

About 13,000 UK holidaymakers currently abroad with the company have been told they should be able to complete their holidays as planned and then return to the UK.

But all future holiday bookings and flights were yesterday cancelled and customers expecting to travel in coming days and weeks were told not go to UK departure airports.

The company has 18 employees and had an annual turnover of about £35m.

Ian Oakley-Smith, joint administrator and director at PwC said: “The company has suffered because of the difficulties faced by the travel industry during 2010 and 2011, as a result of the economic downturn. The director has determined that the business is no longer able to trade and placed the company into administration.

“The company will cease operating with immediate effect. Regrettably most staff have been made redundant. We will be working closely with employees affected by this decision to ensure they receive the support they need during this difficult time to assist with their claims for redundancy and other compensatory payments.”

The CAA yesterday said its staff were trying to ensure that all Atol-protected holidaymakers in Turkey would be able to stay in their accommodation until they were due to travel home.

“If customers are asked to pay again for accommodation, they should send a claim to the CAA on their return home so that a refund can be considered,” said the CAA.

The CAA has posted information for those who are currently abroad as well as those with future bookings on its website – www.caa.co.uk.

An Atol scheme spokesman said: “There is never a good time for a travel firm to fail; unfortunately the height of summer is the worst possible time.”

The spokeswoman added: “However people who booked Atol-protected holidays with Holidays 4U who are currently abroad will be able to complete their holiday or claim a refund from the CAA.”